That target is based on the likelihood of retesting phase 1 of the hyperwave after entering phase 7. That is supported by the swing target from the current , as well as the visible range . Anyone calling for ETH' going to $0 is not thinking very hard about it. Not saying that isn't possible, am saying that is a ridiculous target to use as a trader. There is going to be a ton of support at $35 and even more below that. I think this will happen by late October or early November 2018. That is based on the angle of the previous selloffs which lines up with trend and horizontal support.
That is also right in line with my call for $2,860 BTC' by Oct 31. The next move will be violent after such a long consolidation and if Bitcoin breaks down it's triangle ETH' will fall faster, just like it has this entire bear market.
Selling anywhere within the top of the channel should provide tremendous risk:reward. If the green horizontal at ~$187 breaks down then it will be time to enter. I have a stop order set to open a short if that happens. However, as long as USDT:USD continues to resist below the then there is a very decent chance we see another USDT’ selloff alongside a big crypto pump.
I will feel much more comfortable about disregarding that situation if a daily candle can close above that trend. Until then I will continue shorting it as well.